Senators Call For More Money In Small Business Lending Program

Ruben Fields
April 9, 2020

The expectation was that a business owner can go to their lender, apply and get money in the same day.

Pelosi said, however, that Democrats will demand certain conditions on new funding for small-business loans amid the coronavirus pandemic to ensure that minorities and underserved communities aren't left out of the program, The Hill reported, citing a Pelosi interview with CNN.

SBA's initial rule for another program, the Economic Injury Disaster Loan (EIDL) program, said farmers are not eligible, but Senate Agriculture Appropriations Subcommittee Chairman John Hoeven, R-N.D.; Senate Agriculture Committee Chairman Pat Roberts, R-Kan.; Senate Agriculture ranking member Debbie Stabenow, D-Mich.; and a coalition of House members have written SBA that it was congressional intent to include farmers in the EIDL program.

"The biggest banks in our country are doing it", he said.

With shops and restaurants nationwide forced to shut down due to the coronavirus pandemic, the government launched the Paycheck Protection Program (PPP) Friday to provide $350 billion in what are essentially grants as long as businesses use the funds to pay their workers. The Paycheck Protection Program aims to do just that.

The loan is based on the calculations of the payroll for 2019. Bank of America on Monday said it received 177,000 applications for loans under the program asking for $32.6 billion in financing - almost 10 percent of the amount Congress has allotted - and had reached its $10 billion capacity to lend to small business customers.

"I think we are seeing now that there is an appetite at the federal level to fund the program further", Bologna said.

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If you are still having trouble applying for a small business loan, do not hesitate to reach out to my office and we will get you in touch with the right person.

The PPP is proving to be popular among businesses seeking help to stay afloat.

"We have days, NOT weeks to address this", Rubio wrote. That amount hasn't been given to firms yet, but represents the value of loans SBA has registered and guaranteed for lenders to complete the process and disburse funds, according to a senior administration official.

Mr. Carriero said he was impressed with the way policymakers had crafted the terms of the relief program for small businesses.

But the American Bankers Association praised the decision to increase funding for the program and said despite the early difficulties banks are working to process the loan applications as quickly as possible. None are helping him, most because he doesn't bank with them, he said.

Senate Majority Leader Mitch McConnell said he wants to get lawmakers to approve the infusion on Thursday, but Democratic House Speaker Nancy Pelosi said she wants assurances the funds are being distributed equitably.

The loan "means that I don't have to lay my workers off, it gives me critical cash flow that means I won't get behind on bills", she said.

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